Tradable Pockets Amid the Jitters

We have some nervous action Monday morning, but speculative money is staying busy with the likes of Netflix (NFLX), Amazon (AMZN) and Facebook (FB). Breadth is running at 1,850 gainers to 3,200 decliners, but I am seeing pockets of positive action. Precious metals are the primarily laggard, and there isn't any notable sector leadership.

One group that's doing well is mortgage-servicing. Nationstar Mortgage (NSM) has purchased a large portfolio, and that is goosing its estimates and bringing in some chaser action; osther companies, such as Walter Investment (WAC) and Newcastle Investment (NCT), are benefiting as well. I'm nibbling a little at Newcastle, which is a real estate investment trust that handles some of Nationstar's accounts and has a 9.8% dividend yield. The company plans to spin off its residential assets, and that is helping to drive the action.

Uni-Pixel (UNXL), which I discussed Friday, is my stock of the week and is moving very strongly again. This is a classic momentum situation, and the hot money is all over that one right now. I'm keeping an eye on Aruba Networks (ARUN) for a break above $22, but it's moving slowly. Old favorite Nanosphere (NSPH) is perking up, and I continue to hold that stock.

Overall, while the major indices look weak this session, most stocks on my screen are holding up fairly well. I'm not rushing to sell unless they commit a technical breach. This isn't unhealthy action in the bigger scheme, but it may require some patience as we wait for it to play out. I'm going to keep looking for new buys, but I'm in no hurry.

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